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You read that correctly! The feed-in tariff paid to homes with solar panels might not be cut for a further three months if the government is forced into making a compromise decision.

Last year the Department for Energy and Climate Change (DECC) announced it's plans to halve the tariff paid to homeowners with solar panels. The proposed change would reduce the amount paid from 43 pence to 21 pence per killowatt-hour. (kWh)

However, the DECC's plans have since been put on hold after a challenge from three seperate pressure groups, representing the concerns of the solar panel industry and the environment, raised the contention that halving the feed-in tarrif would significantly damage the future of the industry, including the loss of some 30,000 jobs.

The ongoing dispute has resulted in a high court ruling that has tarred the cuts as "legally flawed." If the government is unable to defend its position it will be forced to add millions of pounds to the feed-in tarrif budget therefore extending it until the 3 March.

The governments announcement back in December prompted a huge demand for solar panels with almost 80,000 installations in the space of 6 weeks. The imposition of the proposed cuts is expected to deterr homeowners from installing solar panels, which in turn will have a detrimental impact on both the industry and the environment.

The Feed-in Tariffs (FITS) scheme was introduced on 1 April 2010 under powers in the 2008 Energy Act and was designed to encourage the 'deployment of small-scale low-carbon electricity generation' in order to help Britain meet its international energy obligations.

Remember, when you install your solar panels it is also worth upgrading to energy efficient LED Lights at the same time. They use 90 per cent less energy which will free up even more electricity for you to sell, helping you to maximise the rate of return on your investment.